Bitcoin (BTC), Price on the Brink of Massive Breakout to $40K
The publication of U.S. unemployment statistics saw Bitcoin’s price rebound from its previous decline. As on-chain analytics indicate that the recent price surge will continue, the asset’s value has not fallen below the $23,000 psychological barrier.
Bullish On-Chain Metrics
Bitcoin (BTC), which briefly surpassed $24,000, has lost all of its gains at the beginning February. Despite the fact that Bitcoin is struggling to rebound to the $24,000 mark, the bulls have successfully protected the $23,000 level. The realized Bitcoin price, as well as the realized price for both long-term and short-term holders of Bitcoin are on-chain measures that give a clear indication of whether certain cohorts of the market can be profitable or not.
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Market participants in all three categories are now in the black, as Bitcoin’s price has risen to over $23,000 This is a clear example of the importance of this level to many crypto market participants. The Bitcoin Market Value to Actualized Value (MVRV), an indicator on the blockchain, can be used to determine when the price is above or under “fair value” and to measure market profitability. The MVRV Ratio currently stands at 1.18, which is quite close to 1.
MVRV Ratio lower than 1 is traditionally indicative of bear market bottoms, accumulation of smart money, and accumulation. MVRV stands at 1.18. This lends credence the idea that market players are currently building wealth and could see a new local all time high soon. Many believe that the flagship cryptocurrency’s price will surpass the $30K mark, with a ceiling of $40K.
Is there a price dip in Bitcoin (BTC), Incoming Bitcoin?
Rekt Capital, a prominent crypto trader and analyst, noticed a potential cue for Bitcoin’s decline before it continued to rise. It was evident by the fact that the Relative Strength Index (RSI), rebounded in January after hitting an all-time low and retaken a critical support level. Although he acknowledged that historically, Bitcoin markets have not seen double bottoms in RSI (relative strength index), he said that there is still a possibility of a higher low.
Michael van de Poppe, another crypto pundit, also shared the same sentiment. He believes that a Bitcoin fall back to the $20K area is more likely and makes “a lot” of sense. Michael reiterated his bullish view of Bitcoin at $40k earlier today. He called it the “Bitcoin To $35-40K Season”.
Theoretically, a correction to $20K would make a lot of sense and be a great opportunity to buy #Bitcoin.
However, most people are still waiting for the correction to occur, as a large number of people have been left behind.
In this regard, it is best to continue upwards.
— Michael van de Poppe (@CryptoMichNL) February 4, 2023
At the time of writing, Bitcoin’s price was $23,444 (BTC). According to CoinGape’s crypto market tracker, this means that Bitcoin (BTC) has experienced a growth rate of 0.33% in the past 24 hours. This compares to a jump in value of 2% in the last seven days.
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About the author
The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.